|
The
average age of U.S. cars and light trucks this year rose to a
record 12.6 years, according to the report by S&P Global
Mobility on Wednesday, up by two months from 2023.
Though the rise in the average age of vehicles has slowed as new
registrations improve, S&P said it expects those aged six to 14
years or older to account for 70% of the vehicles in operation
over the next five years.
"This continues to improve business opportunities for companies
in the aftermarket and vehicle service sector in the U.S., as
repair opportunities are expected to grow alongside vehicle
age," S&P said in the report.
The average age of battery-powered vehicles is also set to rise
in the short term after holding steady at about 3.5 years since
2019 as new vehicles accounted for a large share of those in
operation.
But high interest rates meant to tame stubborn inflation has
soured consumer sentiment for electric vehicles (EVs) -
typically pricier than their gas-guzzling counterparts - and led
to a slowdown in demand.
"We started to see headwinds in EV sales growth in late 2023,
and though there will be some challenges on the road to EV
adoption that could drive EV average age up, we still expect
significant growth in share of electric vehicles in operation
over the next decade," Todd Campau, aftermarket practice lead at
S&P Global Mobility, said in the report.
(Reporting by Abhirup Roy in San Francisco; Editing by
Subhranshu Sahu)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
